HomeMy WebLinkAbout2011-02-14 - Agendas - Final Fayetteville Fireman's Pension and Relief Fund
Meeting Date February 14, 2011
Adjourn Time 3:45 p.m.
Attendees:
Gene Warford, Ronnie Wood, Pete Reagan, Marion Doss, Mayor Jordan, Sondra Smith, City Attorney Kit
Williams, Audience and Press
Subject: Roll Call
Mayor Jordan Present
Marion Doss Present
Pete Reagan Present
Gene Warford Present
I Ronnie Wood IPresent
ISondra Smith IPresent
Subject: PRB Question # 1 Subject: PRB Question#1
TA) The Board is awaiting the outcome of the TB) The Board as a whole has not taken any
2011 Legislative Session to see what benefits action since the October 18, 2010 Special
we can gain from the Guarantee Fund Meeting
Motion To: Approve Motion To: Approve
Motion By: Pete Reagan Motion By: Marion Doss
Seconded: Gene Warlord Seconded: Gene Warlord
Mayor Jordan Yes Mayor Jordan Yes
Marion Doss IYes Marion Doss Yes
Pete Reagan Yes Pete Reagan Yes
Gene Warford Yes Gene Warford Yes
Ronnie Wood Yes Ronnie Wood Yes
Sondra Smith No Sondra Smith No
Fayetteville Fireman's Pension and Relief Fund
Meeting Date February 14, 2011
Adjourn Time 3:45 p.m.
Attendees:
IGene Warford, Ronnie Wood, Pete Reagan, Marion Doss, Mayor Jordan, Sondra Smith, City Attorney Kit
Williams, Audience and Press
I
Subject: PRIB Question #2 Subject: PRIB Question#2
TA—) Pursuant to State law the Fayetteville TB—) The Fayetteville City Council has been made
City Council has been informed several times aware of the dire financial condition of the fund
during recent years that the Firemen's several times.
Pension Fund is not actuarially sound.
Motion To: Approve Motion To: Approve
Motion By: Gene Warford Motion By: Pete Reagan
Seconded: Pete Reagan Seconded: Marion Doss
Mayor Jordan Yes Mayor Jordan Yes
Marion Doss IYes Marion Doss Yes
Pete Reagan Yes e e eagan Yes
Gene Warford Yes Gene Warford Yes
Ronnie Wood Yes Ronnie Wood Yes
Sondra Smith Yes Sondra Smith Yes
Fayetteville Fireman's Pension and Relief Fund
Meeting Date February 14, 2011
Adjourn Time 3:45 p.m.
Attendees:
lGene Warford, Ronnie Wood, Pete Reagan, Marion Doss, Mayor Jordan, Sondra Smith, City Attorney Kit
Williams, Audience and Press
Subject: PR13 Question #3 Subject: PR13 Question#4
Ves It would have been helpful if the report came a
few days prior to the meeting so that the
Firemen's Pension Board would have more time
to study the information.
Motion To: Approve Motion To: Approve
Motion By: Gene Warford Motion By: Ronnie Wood
Seconded: Pete Reagan Seconded: Pete Reagan
Mayor Jordan Yes Mayor Jordan Yes
Marion Doss IYes Marion Doss Yes
Pete Reagan Yes e e eagan Yes
Gene Warford Yes Gene Warford Yes
Ronnie Wood Yes Ronnie Wood Yes
Sondra Smith Yes Sondra Smith Yes
Fayetteville Fireman's Pension and Relief Fund
Meeting Date February 14, 2011
Adjourn Time 3:45 p.m.
Attendees:
IGene Warford, Ronnie Wood, Pete Reagan, Marion Doss, Mayor Jordan, Sondra Smith, City Attorney Kit
Williams, Audience and Press
I
Subject: PRB Question #5 Subject: PRB Question#5
TA—) The Pension Review Board staff should TB—) The Fayetteville Firemen's Pension Board
track and advise our Board of any legislative asks the Pension Review Board to explore a
changes that would affect our fund or the change to State statute to allow a benefit
Guarantee Fund. reduction for plans above the State mandated
level.
Motion To: Approve Motion To: Approve
Motion By: Pete Reagan Motion By: Mayor Jordan
Seconded: Gene Warford Seconded: Sondra Smith
Mayor Jordan Yes Mayor Jordan Yes
Marion Doss IYes Marion Doss Yes
Pete Reagan Yes e e eagan No
Gene Warford Yes Gene Warford Yes
Ronnie Wood Yes Ronnie Wood Yes
Sondra Smith Yes Sondra Smith Yes
Firemen's Pension&Relief Fund
Board of Trustees Agenda
February 14,2011
Page t of I
Lioneld Jordan Chairman Pete Reagan Position 2/Retired
Ron Wood Position 4/Retired
Sondra E.Smith Secretary Gene Warlord Position 3/Retired
Marion Doss Position l/Retired Fayve e;iiie
ARKANSAS
Firemen's Pension and Relief Fund
Board of Trustees Meeting Agenda
February 14, 2011
A Special meeting of the Fayetteville Firemen's Pension and Relief Fund Board of
Trustees will be held at 3:00 PIVI on February 14, 2011 in Room 326 of the City
Administration Building.
Old Business:
PRB letter regarding the projected insolvency status of the fund. Need to send them a
response letter:
1. What actions have you planned as a result of the Special Report?
2. What discussions have you had with the city officials to explore solutions? How
has your city board been made aware?
3. Did you find the Special Report helpful in your planning?
4. What would you have wanted to have been included in the Special Report that
was not previously included?
5. What additional information could be provided by the PRB to assist your fund?
R B
ARKANSAS FIRE&POLICE PENSION REVIEW BOARB 620 W.3rd,Sufte 200
Little Rock,Arkansas 72201-2223
Telephone:(501)682-1745
December 16,2010 RECEIVED Toll-Free:(866)859-1745
Fax:(501)682-1751
Board of Trustees DEC 17 2010 email:info@lopfi-prb.com
Fayetteville Fire Pension Fund
CITY OF FAYETTEVILLE website:www.lopfi-prb.com
113 W. Mountain CITY CLEWS OFFICE
Fayetteville,AR 72701
Re: Projected Insolvent Status (Via: Certified Mail)
Dear Trustees:
The Arkansas Fire and Police Pension Review Board(PRB)has reviewed the results of the December
31,2009 actuarial valuations and has found that the projections used to identify underfunded plans under
ACA 24-11-208 require us to declare that your fund still meets the definition of a"projected insolvenf'
plan as described in that section.
During 2010, the PRB provided to you through our actuary a detailed projection and simulation of your
Rind showing various actions that could be taken. These included adding income streams and
consolidation with LOPF1. We do not plan on providing an update to this study at this time unless you
request it. We would like to have an update from your fund so that the PRB will know how to best help
your fund improve its funding.
1. What actions have you planned as a result of the Special Report?
2. , What discussion have you had with the city officials to explore solutions? How has your city board
been made aware?
3. Did you find the Special Report helpful in your planning?
4. What would you have wanted to have been included in the Special Report that was not previously
included?
5. What additional information could be provided by the PRB to assist your fund?
We would appreciate a response to the PRB in writing by the end of February,2011, This would
allow the PRB to discuss and authorize any additional help for your fund during our March 2011
regular board meeting.
Thank you for your attention to this issue.
Respectfully,
David B. Clark
Executive Director
Cc: PRB Members
January 27, 2011
This is my response, as a member of this board,to the Pension Review Boar&s letter
dated December 16, 2010. 1 ask that a copy of this response be attached to the minutes of this
meeting.
The second sentence in paragraph two says, "These included adding income streams and
consolidation with LOPFI." What are these "income streams" and where will they come from?
What exactly is the PRB referring to when they say "income streams?"
Question#1: What actions have you planned as a result of the Special Report?
We as a board have met two times since the October special meeting when the PRB
presented their special report. According to the minutes of our regular October 28th meeting,the
only discussion on this special report was that Sondra had emailed a copy of that report to us.
Kit mentioned that the report was discussed on Monday. I assume that he meant Monday,
October 18. The minutes of our November l8th meeting shows that we did not discuss at all this
special report.
The answer then to this first question is nothing. We, as a board, have not planned any
actions as a result of the special report. We need to address this.
Question #2: What discussion have you had with the city officials to explore solutions?
How has your city board been made aware?
We as the pension board have had no discussions with any city official about this special
report. Over the past several years we have occasionally discussed during regular meetings the
soundness of the fund: the mayor,city attorney, finance director and occasional city council
member have been present. We have not arrived at any solution. Several times I have expressed
my belief that consolidation with LOPFI is the best solution. I understand that this solution will
law(Act 1266 of 1995)goes to the Arkansas Fire and Police Pension Guarantee Fund(the
Fund). Since our pension fimd is only receiving Amills does that mean that we cannot expect to
be eligible for this guarantee fund? It is my understanding that to be eligible for this guarantee
fimd the city must be collecting a dedicated millage of I mill for the fire pension fund. I think
everybody needs to know whether or not we would be eligible for this guarantee fimd Mi order to
make good decisions.
As a board we need to answer these questions that the PRB has asked us. We need to do
this as they have requested by the end of February. Therefore I make a motion that our secretary
prepare a response to the special report as requested by the PRB that includes my questions and
any other questions that any board member may have by February 17, 2011.
WILL WE NEED TO HAVE A SPECIAL MEETING ONCE THAT LETTER IS PREPARED
AND OFFICIALLY APPROVE ITS CONTENTS BEFORE SHE SENDS IT?
IF SO....I make a motion to have a special meeting on Thursday,February 17,2011 in order to
approve our response to the PRB.
February 10, 2011
David Clark, Executive Director
Arkansas Fire & Police Pension Review Board
620 W 3rd Street Suite 200
Little Rock, AR 72201
RE: Firemen's Pension and Relief Fund Board of Trustees
Projected Insolvent Status
Dear Mr. Clark:
As a member of the governing body of the Firemen's Pension and Relief Fund Board of
Trustees I am very concerned about the current status of the Firemen's Pension Fund. I have
requested on more than one occasion that benefits (that were increased before I became a
member of the governing body) be reduced in order to ensure the viability of the fund. The
following is my response to your letter regarding the Projected Insolvent Status of the Firemen's
Pension Fund dated December 16, 2010.
What actions have you planned as a result of the Special Report?
The board as a whole has not planned any action although it has been discussed at our
meetings. I plan to continue to pursue a reduction in benefits. I believe this is the only way to
maintain the solvency of the plan and to receive future support from our City Council.
What discussions have you had with the city officials to explore solutions?
A joint meeting was held with the Fayetteville City Council, Firemen's Pension Board and the
Pension Review Board on October 18, 2010. At that meeting several of the City Council
members expressed that a reduction in benefits should be pursued. A copy of the October 18,
2010 minutes is attached.
How has your city board been made aware?
Pursuant to state law the Fayetteville City Council has been informed several times
during recent years that the Firemen's Pension Fund is not actuarially sound.
2. The joint City Council and Firemen's Pension Board meeting of October 18, 2010
conducted by you explained the dire financial predicament of the Pension Fund.
Did you find the Special Report helpful in your planning?
This was the second special report that we received. The information was basically the same
each time. With the current makeup of the board it is very difficult to come to a consensus in
our planning for the future of the plan.
What would you have wanted to have been included in the Special Report that was not
previously included?
The Special Report seemed to imply that the City should infuse city money into the Firemen's
Pension Fund to make it viable. The City of Fayetteville taxpayers are already contributing tax
dollars to the Firemen's Pension Fund. I would have liked more information included on what
the pension fund should incorporate to make their fund sustainable.
What additional information could be provided by the PRB to assist your fund?
The Board of Trustees received a report from Osborn, Carreiro &Associates, Inc. on November
19, 2009, stating that for the fund to stay solvent, as it currently exists, it will be necessary for
additional across the board reductions to be implemented. Rules and Regulations governing
these plans have been implemented over the years by the PRB Board. I implore the PRB
Board to implement any PRB rule change that might be necessary to Allow for a reduction in
benefits, if a plan is above the State mandated level. I also implore the PRB Board to lobby
State legislators to change State statutes, if necessary, to allow for a benefit reduction for plans
that are above the State mandated level.
In closing I would like to thank the Pension Review Board for their time. I certainly hope that we
can work together to sustain the plan to ensure pensioners continue to receive benefits.
Sincerely,
Sondra E. Smith
Firemen's Pension and Relief Fund Secretary
City Clerk Treasurer
Seite I
From: Peter Reagan <preaganl4@gmail.com>
To: <mayor@ci.fayefteville:ar.us5-, <Ijordan@ci.fayetteville.ar.us>, <city—cl...
Date: 2/14/2011 8:46 AM
Subject: PRB Questions answered PR
Attachments: PRB Questions answered PR 2.14.1 1.doc
Mayor Jordan,
Attached are my answers to the five questions the Arkansas Pension Review
Board requested we answer. I request that they be incorporated in the final
draft letter.
As always, if you have any questions, please contact me.
Regards
Peter T Reagan, Trustee
Fayetteville Firemen's Pension and Relief Fund
P 0 Box 1922
Fayetteville AR 72702
E-preagonl4@gmaii.com
C -479-841-0320
Fayetteville Firemen's Pension and Relief Fund
Mayor Lionald Jordan, Chairman
Chairman Jordan,
Below are my answers to the 5 questions the Arkansas Pension Review Board
requested we answer. I request that they be incorporated in the final draft.
I. At a previous FFD Pension Board meeting, it was discussed and agreed to
by myself and the Chairman to wait and see what came out of the 2011
Legislature that would allow us to benefit from the"Guarantee Fund".
2 The only solution the "City of Fayetteville"officials have on their radar is
the reduction of benefits to all retirees. It was quite obvious that the City
Attorney has explained to them his position which is :
a. The City of Fayetteville has no Liability for the Fund
b. We as a Pension Board can reduce benefits to retirees, even though two
Arkansas AG opinions say different.
3 Yes,I found the special report helpful.
4. 1 would have preferred to have the report much sooner to read and review
prior to the combined meeting with City Alderman.
5 None, PRB Staff has been very responsive to all questions and
information requests.
Respectfully Submitted
Peter T Reagan, Trustee
2.14.2011